WASHINGTON—As the Senate returns this week, CUNA expects lawmakers will begin looking ahead at what future relief—so called “phase IV stimulus--might look like, while NAFCU is also watching the same legislative efforts while also monitoring the PPP.
“It's obviously far too early to say for certain, but the Senate is likely thinking about additional funds for PPP, having discussions around payroll tax enhancements and other measures for small and large businesses,” said Eli Joseph, CUNA deputy chief advocacy officer. “And we have recently seen leaders like Mitch McConnel (R-KY) focus on (employer) liability protection, and Speaker (Nancy) Pelosi (D-CA) focusing on funding for state and local governments.”
Joseph pointed out, too, formation of the CARES oversight body will play a role in reviewing data from the PPP program.
“The House remains out this week, and the timeline for the chamber to reconvene is tentatively set for next week,” said Joseph. “We believe that timeline is fluid, as leaders among both parties agree on safe practices and protocols for hearings and floor votes.”
Also this week, the Supreme Court is expected to hear arguments—and did so on Monday for the first time in its history via teleconference--on a lawsuit challenging the constitutionality of the government-backed debt collection exception of the Telephone Consumer Protection Act (TCPA). Under the exception, calls intended to collect a debt owed to or guaranteed by the U.S. are exempt from the TCPA.
NAFCU Monitoring PPP, Future Compliance Issues; Town Hall Scheduled
Meanwhile, the second round of the Paycheck Protection Program has gone somewhat smoother than round one, but credit unions are still experiencing “hiccups,” according to Brad Thaler, VP-legislative affairs with NAFCU.
.–The second round of the Paycheck Protection Program has gone somewhat smoother than round one, but credit unions are still experiencing “hiccups,” according to Brad Thaler, VP-legislative affairs with NAFCU.
Many credit unions still have “applications in the queue” and money was still available on Monday, noted Thaler.
Round two of the PPP includes another $310 billion in funding, including funds reserved for small institutions such as credit unions.
“There’s still high demand,” said Thaler.
There has been some discussion recently over what kinds of compliance issues credit unions and other lenders will face when the PPP loans—which are supposed to become forgivable—become due, and Thaler said NAFCU has been pushing the Small Business Administration to provide more clarity and answers to questions being raised.
Monitoring New Stimulus
Meanwhile, he said the trade group continues to monitor Capitol Hill talk of any new federal spending, or what phase IV stimulus might include.
“A lot of our focus has been on what the next stimulus package might look like,” said Thaler. “We have shared out thoughts with the Hill on what credit unions are doing.”
Thaler acknowledged there remains debate over whether any additional stimulus spending is needed at all, as more than $2 trillion has been budgeted to date.
As for the rest of the credit union priorities, Thaler said response to the coronavirus pandemic has swallowed the congressional agenda in the current session, and likely will for the remainder of the year.
There will be some spending bills that demand attention, he said, and the Senate will also be looking to move forward with various nominations.
Also This Week
Also in Washington this week:
- NAFCU noted that its president and CEO, Dan Berger, and members of the association's senior advocacy staff are set to hold discussions with the NCUA and CFPB on efforts to support credit unions during the coronavirus pandemic and provide regulatory relief.
- NAFCU on Wednesday is hosting a town hall where credit union industry leaders—NAFCU President and CEO Dan Berger, Arkansas Federal Credit Union President and CEO Rodney Showmar, and Tower Federal Credit Union President and CEO Rick Stafford—will share insights into crisis responses, business continuity planning, and financial sustainability.